Zimbabwe's Central Securities Depository is expected to be operational in 2013
The Central Securities Depository (CSD) should be operational in Zimbabwe within the first half of 2013, it has been revealed.The Central Securities Depository (CSD) should be operational in Zimbabwe within the first half of 2013, it has been revealed.
The Chengetedzai Depository Company (CDC) – a consortium in charge of promoting the project – is currently finalising the implementation process, Zimbabwe Independent reports.
The CSD will ensure that the bulk of securities transactions are processed in an electronic book entry form, thus expediting the settlement of equity transactions and ensuring compliance with international best practice.
Furthermore, It will reduce the risk of human error, fraud and settlement delays, but also unlock liquidity, cut costs and increase the general efficiency of equity market trading, the news source reports.
According to the Sunday Times Zimbabwe, Finance Minister Tendai Biti said the CSD was a critical part of a modern capital market system.
He added he would also like to modernize the ZSE Act and the Securities Act and possibly introduce a "super regulator", similar to the UK’s Financial Services Authority.